(Reuters) – Chinese companies Huawei Technologies and Semiconductor Manufacturing International Corp used American technology to produce an advanced chip in China in 2023, Bloomberg News reported, citing people familiar with the matter.
SMIC used technology from Californian company Applied Materials Inc (NASDAQ:) and Lam Research Corporation (NASDAQ:) to develop an advanced 7nm chip for Huawei last year, a report said on Thursday, adding that SMIC acquired US equipment before the US banned such sales to China in October 2022.
The White House Commerce Department, Huawei, Applied Materials, Lam Research and SMIC did not immediately respond to Reuters requests for comment.
The United States has charted a slow course to deny SMIC and Huawei access to advanced American technology.
In 2019, the Trump administration added Huawei to a list of trade restrictions due to alleged sanctions violations. SMIC was added to the same list in 2020 due to alleged ties to the Chinese military-industrial complex. Both companies have previously denied wrongdoing.
Last month, Reuters reported that the US government was targeting SMIC and cutting off its most advanced plant from more US imports after it produced a chip for Huawei that is used in its Mate 60 Pro phone.
The Biden administration has moved aggressively in recent months to cut off shipments of more advanced artificial intelligence chips to China as part of its efforts to prevent Beijing from obtaining advanced U.S. technology that could bolster its military.